Penalty

MOBILE COUNTY SALES, USE, LEASE & LODGING TAX and MOBILE COUNTY SCHOOL SALES & USE TAX

EFFECTIVE OCTOBER 1, 2016

Mobile County sales, use, lease/rental and lodging taxes and Mobile County School Sales and Use tax returns must be filed and paid by the 20th of the month following the reporting month.

Using the ONE SPOT filing system via the Alabama Department of Revenue’s My Alabama Taxes (MAT) web site is the most efficient and recommended way to report your sales, use, lease/rental and lodging taxes due to Mobile County. There are some things to take into consideration, however, and these will potentially affect penalties which may be incurred.

The returns and remittances are due on or before the 20th day of the month following the month during which the tax is accrued. The Electronic Funds Transfer payment information must be transmitted by 4:00 p.m. (Central Standard Time) on or before the due date, to be considered timely paid.

Penalties imposed on late payments and late filing of Mobile County sales, use, lease and lodging taxes were changed effective October 1, 2013 to follow those of the State of Alabama:

The greater of 10% of taxes due or $50 for returns not timely filed.

10% of taxes due for payments not timely made.

Zero returns must be timely filed in order to avoid the $50 failure to timely file penalty.

Mobile County School Sales and Use Tax penalties remain unchanged and are the same as the above penalties for Mobile County Sales Taxes. Please note that the School Tax is now included in Locality Code 7049 rates and is not paid separately.

Accounts in collection for any unpaid taxes may be subject to penalty amounts of 1% per month unpaid, up to 25%, in lieu of the 10% non-payment penalty.

Note: U. S. Postal Service postmark is considered the date filed for returns mailed; however, we request that you file using ONE SPOT-MAT which will provide immediate confirmation for proof of filing.

Alabama Legislative Act #2010-268 now mandates that customers using a Visa or Mastercard will be charged a 2.3% fee ($1.50 minimum) for each registration year renewed, as well as $1.00 mail fee for decals. A mail fee of $2.50 will apply for customers receiving new metal plates.